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The mathematician of the Complutense University of Madrid, José-Vidal Ruiz Varela, argues that Europe must raise its borrowing limit, leaving its deflationary policy. Meanwhile, USA must correct debt and raise the interest rates. Raising the interest rates in the USA and dropping them in Europe, recovers the European domestic demand and EE.UU may return to invest in Europe, with a stronger dollar, without any problem, generating hundreds of thousands of Jobs

NEW YORK (MarketWatch)The FOMC decided to trim the bond purchases by another $10 billion this month and changed the way it targets unemployment and inflation in deciding short-term interest ratesYellen fielded questions from the press following the widely expected Fed policy announcement in her first news conference as the Fed chairwoman, succeeding Ben BernankeStocks, which were flat before the Fed statement, retreated afterwardsBut the hard drop, which took the Dow down more than 200 points, came when a reporter asked Yellen how long the Fed would wait to start raising rates after it stops buying bonds in what’s known as quantitative easingYellen said the Fed’s language “probably means something on the order of around six months, that type of thing.” The taper of the Fed’s bond purchases is expected to end in October or November, putting the potential first rate hike on course for April or May of 2015Yields on 10-year Treasurys surged, gold prices fell further and the dollar spiked against the Japanese yen after the Fed announcement and Yellen commentsTraders in fed funds futures moved up their bets on rate hikes by two meetings, to April 2015“It was a harsh reminder that QE wouldn’t be here forever and it would be done by the fall Then when she noted that ‘considerable time’ for keeping the fed funds rate in the current range would be six months after QE ends, this opened the door to higher rates by April. July was the consensus for the first rate hike,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research